Fortune Brands Innovations, Inc. 8-K

What Happened
Fortune Brands Innovations, Inc. announced on January 16, 2026 that it entered into a five‑year unsecured revolving credit agreement (the Credit Agreement) with JPMorgan Chase Bank, N.A. as administrative agent, Bank of America, N.A. as syndication agent, and participating lenders. The Credit Agreement provides $1,250,000,000 in aggregate commitments (including $50,000,000 available for letters of credit) and amends and restates the company’s prior credit facility dated August 2, 2022. The facility serves as the liquidity backstop for repayment of notes issued under the company’s commercial paper program and permits borrowings for general corporate purposes.

Key Details

• Effective date: January 16, 2026; press release filed January 20, 2026 (Exhibit 99.1).
• Total commitments: $1,250,000,000 (letters of credit capacity: $50,000,000).
• Term and extensions: five‑year facility with the ability to request two one‑year extensions; ability to seek incremental commitments and/or term loans up to $750,000,000 (subject to conditions).
• Pricing: variable rate loans — base rate margin 0.00%–0.30%; term SOFR/daily simple SOFR margins 0.80%–1.30%; margins are tied to the company’s long‑term senior unsecured debt ratings.
• Covenants: includes customary covenants and defaults; financial covenants require (1) consolidated EBITDA to consolidated interest expense ≥ 3.0x and (2) consolidated total indebtedness (less certain cash) to consolidated EBITDA ≤ 3.5x (with temporary flexibility for certain permitted acquisitions).

Why It Matters
This credit agreement secures medium‑term liquidity for Fortune Brands by backing its commercial paper program and providing a committed $1.25B backstop for working capital, capital expenditures and permitted acquisitions. The facility’s size, unsecured nature and covenant levels are key for investors assessing the company’s liquidity, borrowing costs (which will vary with ratings and SOFR) and leverage flexibility going forward.